Pension Liabilities and Risk Parity

In this article, Dr. Edward Qian, PanAgora’s Chief Investment Officer and Head of Multi Asset Research, highlights the different challenges facing public and corporate pensions and proposes different solutions to match pension liabilities. In both cases, a Risk Parity approach can be an effective investment strategy in either an asset-only or an asset-liability management framework. The author first gives a brief review of Risk Parity strategies, and then presents Risk Parity solutions for both public and corporate pensions.